Fedrigoni Group, a Verona, Italy-based manufacturer of specialty papers for packaging, fine printing and self-adhesive labels, has signed an agreement to acquire Ritrama, an Italian multinational group specializing in self-adhesive products.
According to a source quoted by Reuters, the deal is worth between 250-300 million EUR.
Ritrama has manufacturing facilities in Italy, Spain, the United Kingdom, Chile and China. The Rink family, founders of Ritrama, will maintain ownership of and continue to manage Ritrama’s North American operations, while continuing its business partnership with the rest of the group.
This acquisition, the second since Fedrigoni’s acquisition by Bain Capital, strengthens Fedrigoni’s position in the European pressure-sensitive label market, in which it operates through the Arconvert and Manter brands.
The acquisition combines Fedrigoni’s expertise in the production of wine labels (for which it is the second-largest producer globally), and in the production of labels for the food, household and logistics markets, with the advanced self-adhesive technologies of Ritrama, a global producer of labels for the pharmaceutical, beverage and personal care markets. Ritrama, through its graphics and industrial segments, complements Fedrigoni’s portfolio.
‘Strong synergies exist between the businesses of Arconvert and Ritrama,’ confirmed Marco Nespolo, CEO of the Fedrigoni Group. ‘Both companies operate with excellent results on largely complementary markets, with Arconvert specializing in self-adhesive labels manufactured from specialty papers, and Ritrama focusing on the production of self-adhesive plastic films.
‘Our pressure-sensitive labels segment, which is already showing very positive results, will now be larger, broader and more competitive in a market that continues expanding in all segments and geographies, on a global level. Ritrama has a healthy, truly Italian, yet international, DNA, just like the Fedrigoni Group.’
‘I am very proud of this transaction,’ said Tomas Rink, president of Ritrama, ‘which ensures the Ritrama Group and its organization will continue to grow in a healthy and rapidly-expanding industrial reality, the Fedrigoni Group. Ritrama and Fedrigoni share common values.’
‘This operation marks another important step for Fedrigoni,’ commented Ivano Sessa, managing director of Bain Capital and Chairman of Fedrigoni Holding, ‘which fits our strategy of consolidating the Group’s presence in the fields of specialty papers and pressure-sensitive labels, both organically and through acquisitions of international operators such as Ritrama.’
Ritrama’s total revenues of approximately 400 million EUR in the year ended December 31, 2018, coupled with Fedrigoni’s total revenues of approximately 1.2 billion EUR in the same period, amount to total revenues of the combined group of approximately 1.6 billion EUR.
The transaction is expected to close in the first quarter of 2020, and is subject to certain closing conditions.
Rothschild was the financial adviser for Fedrigoni, while Tamburi Investment Partners advised Ritrama.